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The Futures Industry Association today released the following statement from FIA President John Damgard regarding the passage of the farm bill earlier this week by the House and Senate. The farm bill contains provisions reauthorizing the Commodity Futures Trading Commission and amending certain sections of the Commodity Exchange Act.
“Congressional passage of the farm bill is welcome news for the futures industry. Section XIII of the bill reauthorizes the Commodity Futures Trading Commission for another five years and strengthens the CFTC’s powers with respect to customer protection, market surveillance and market manipulation. With this enhanced authority, the CFTC should be even better armed to prevent fraud and protect the integrity of our markets, particularly with respect to energy markets and retail foreign exchange trading.
“The House and Senate agriculture committees spent nearly three years drafting these provisions in consultation with the CFTC and other regulators. The legislation does an excellent job of strengthening market oversight and customer protections without creating an undue burden on our markets or weakening our competitive position in the global derivatives marketplace. The FIA strongly supported the legislation and commends the leadership of the House and Senate agriculture committees for bringing this process to such a successful conclusion.
“One area in particular deserves special attention. With the support of the President’s Working Group on Financial Markets, Congress included in this bill several provisions aimed at battling an epidemic of fraud and customer abuse in the retail foreign exchange business. The legislation sets tough new requirements for firms that want to sell foreign exchange products to retail customers, and it removes any uncertainty about the CFTC’s authority to crack down on fraud.”
The FIA is the leading trade organization for the international futures industry. It is based in Washington, D.C., and its membership includes the world’s largest futures brokers as well as leading derivatives exchanges from more than 20 countries.
